Indonesia Resumes South China Sea Gas Project Despite Beijing Opposition
Indonesia's North Natuna Sea gas project resumes under new operator Prime Group, defying Chinese opposition and marking a significant geopolitical move.
POLICY WIRE — Jakarta, Indonesia — Indonesia’s long-stalled gas project in the North Natuna Sea has resumed operations under new operator Prime Group, following years of commercial uncertainty and diplomatic pressure from China.
Prime Group, the Indonesian company that took over operatorship from Britain’s Harbour Energy, confirmed that activities have restarted at the strategically sensitive Tuna Production Sharing Contract (PSC) field.
“Activities associated with the Tuna PSC have resumed in accordance with applicable regulatory requirements,” a Prime Group spokesperson told This Week in Asia.
The resumption of the project comes amid heightened geopolitical tensions in the South China Sea, where China has been asserting its territorial claims. Beijing previously opposed the project, citing its own claims over parts of the sea.
The North Natuna Sea, rich in natural gas reserves, has been a focal point of regional disputes. Indonesia has been keen to develop its resources to meet domestic energy needs — and reduce dependency on imports.
The project’s revival is expected to have significant implications for regional stability and the balance of power in Southeast Asia. It underscores Indonesia’s determination to assert its sovereignty over the contested waters.
Prime Group’s takeover and subsequent resumption of activities indicate a shift in strategy, possibly influenced by changing geopolitical dynamics and Indonesia’s growing assertiveness in defending its maritime rights.
The development is being closely watched by neighboring countries and major powers with interests in the South China Sea, including the United States, which has been increasing its military presence in the region.
Reporting by Policy-Wire (PW)
